Naira Remains Relatively Stable to Naira Trades at N573/$1 as Forex Transactions Declines

According to reports from multiple bureau de change operators, the exchange rate between the naira and the U.S dollar was quoted at N573/$1 at the parallel market during close of business on 21 December 2021.

On Tuesday 21 December 2021, Naira depreciated by 0.52% compared to the previous trading session where naira traded at N570.

Reports from forex analyst Emem Dennis suggests that the market structure in the foreign exchange market has changed, explaining that the supply of dollar in the forex market outweighs the demand. Largely because of the festive activities, which has deflated forex transactions thus, refactoring the market structure.

Her words” Foreign exchange transactions has been slow largely because of the festive period. Currently the demand for the dollar is drastically low, concurrently outweighing the supply. However demand is likely to boom during the turn of the year”

Meanwhile, data from the central bank of Nigeria revealed that naira traded the dollar at 411.91/$1 on 20 December, While the I and e window quoted naira to dollar at N414/$1. The opening indicative rate closed at N413.84/$1 on Monday, which represents a 1kb depreciation. An exchange rate of N444/$1 was the highest rate recorded during intra-day trading stabilizing at N414.8/$1.

Naira started the week with a 0.07% gain against the US dollar on Monday to close at N414.8/$1 compared to N415.07/$1 recorded in the previous trading sessions. Forex turnover at the official market jumped by 138.5% to $360.18 million from $151.03 million recorded in the previous trading session.

The exchange rate at the Investors and Exporters window appreciated by 0.07% to close at N414.8/$1 on Monday, compared to N415.07/$1 recorded on Friday, 17th December 2021.

The opening indicative rate closed at N413.84/$1 on Monday, which represents a 1 kobo depreciation compared to N413.83/$1 recorded in the previous trading session.

An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N414.8/$1, while it sold for as low as N405/$1 during intra-day trading.

Forex turnover at the official window increased by 138.5% to $360.18 million on Monday.